What was set to be one of the most contentious utility hearings in Florida history took an unexpected turn Monday when state regulators granted Florida Power & Light (FPL) more time to finalize a four-year settlement with key stakeholders – excluding those representing residential consumers.
The move temporarily sidelines a $9 billion rate case – the largest in U.S. history – and shifts the political landscape for a federal utility reform bill reintroduced by U.S. Rep. Kathy Castor (D-Tampa).
Castor’s bill, the Ethics in Energy Act, would prohibit utilities from using ratepayer money to fund political activities. First introduced in July 2023, the measure stalled before reaching a House vote. This year, Castor brought it back with the same core aim: to keep customer dollars out of campaigns, lobbying and political nonprofits.
FPL’s proposal, filed in February, called for rate increases beginning in 2026 to support grid resilience, keep up with population growth, and expand renewable energy and battery storage projects. Despite the scale of the hike, the utility said bills would remain below the national average.
Monday’s PSC decision delays technical hearings and allows FPL until Aug. 20 to submit a finalized settlement agreement. The deal is backed by 10 groups, including Walmart, the Florida Retail Federation, the Southern Alliance for Clean Energy, and Electrify America. FPL President and CEO Armando Pimentel called it “a win for our customers and the state of Florida.”
Castor’s bill reintroduction coincides, drawing attention to utility spending practices while FPL’s high-profile rate case was in the public eye. Now, much of the discussion about the settlement will happen behind closed doors.
“This bill is essential, no matter the outcome of FPL’s hearing or potential settlement,” Castor told Poliverse in a follow-up. “We need increased transparency in utility ratemaking across the country as working families are saddled with higher energy costs due to President Trump’s tariffs, clean energy rollbacks, and the buildout of data centers.”
The 2023 version of the bill failed largely due to a lack of bipartisan traction in Congress. Castor said she’s encouraged by state-level reforms, such as Florida Sen. Don Gaetz’s legislation to strengthen oversight of utility earnings, but stressed the need for federal action.
“Americans deserve affordable energy, but recent Republican policies are making life harder and more expensive,” stated Castor. “I urge my colleagues across the aisle in Congress to work with me to lower prices and guard against utility corruption.”
While the PSC will still hold a public session, the urgency of Castor’s reintroduced bill, which came with a contentious and adversarial rate case, may wane. However, Castor insists the fight isn’t tied to any single utility proceeding but is rather a matter of public good.
“I urge the Florida Public Commission to be as transparent as possible and listen to the public,” says Castor, “particularly cash-strapped Florida families, not just utilities and special interests.”
The PSC will review the final settlement once it’s filed and could approve new rates to take effect Jan. 1, 2026. Meanwhile, Castor will push her bill through Congress.